Delta Airlines Battles Low-Cost Carriers By Putting On Its Strong Suit

Delta Airlines promises to fight back as carriers like Southwest and AirTran start encroaching on its traditional passenger base. The reason? To hear Delta CEO Leo Mullins tell it, Delta just hasn't been that something special in the air lately.

"I think the customer experience in 2002 and even the early part of 2003 was not as good as it should have been," Mullin said in a recent interview with The Associated Press. "I have basically decreed and said to everybody we've got to decree the survival period is over and get back to what has made Delta great over the years, which is a real concentration on customer service and that is what we're about right now."

Like most airlines, Delta changed dramatically in the wake of the 2001 terror attacks on New York and Washington. Delta was renowned for its commitment to customers service, the smiling faces and shorter waiting periods. But after laying off 16,000 people during one of the worst slumps the industry has ever seen, Delta is a shadow of its former self.

"They've lost it, and customers noticed. Then AirTran pops up with smiling friendly people and suddenly people had something to compare Delta to in Atlanta, and that's why AirTran is where they are today," says  Terry Trippler, an industry expert with the online travel service cheapseats.com.

Delta is, according to one industry watcher, by no means alone. Other airlines, hard-hit by 9/11, are also cutting back customer service at a time when just getting through security and on board the aircraft is an adventure.

Delta, however, is trying to make up for the reduction in staff by using technology. Like many airlines, Delta has installed boarding pass kiosks at its ticket counters, allowing passengers who are already booked to get their passes without standing in long lines. Gateside devices are also being installed for those passengers who miss their connecting flights, allowing them to quickly get documents needed to board the next flight to their destination.

"Yes, we've introduced technology into our airports, but we've also changed our employee roles," said Rich Cordell, Senior Vice President for Customer Service. But the bottom line is the customer core of the airline industry, the business traveler. Ray Neidl, an airline analyst with Blaylock & Partners in New York, says Delta fares pretty well on that score. "If you lose the business traveler, you'll never be able to get those yields back up," Neidl said. "It's especially important for Delta to keep its service reputation up."

It's hard, though, for employees to give 110-percent to the customer service aspect of flying when they're constantly wondering about their own futures. CEO Mullin says he's trying to reach out to his employees.

"They've been battered a bit by the circumstances that have occurred," Mullin said. "Who could not? It's been very hurtful to lose 16,000 of your valued colleagues and have all of that change your entire relationship. So we're working hard on the employee morale situation in order to build that sense of spirit back into the place as well."

FMI: www.delta.com